After a day of rest, the S&P 500 and Nasdaq Composite both hit record highs on Tuesday. With that in mind, let’s look at a few top stock trades as we begin the last trading month of the year.
Top Stock Trades for Tomorrow No. 1: Amazon (AMZN)
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Amazon (NASDAQ:AMZN) and the rest of big tech have been trading much better lately. A look at the daily chart shows that the name is starting to perk up.
These names have been wedging in a sideways consolidation phase over the last few months. And while it can be frustrating for investors, it’s actually quite healthy.
Bulls now need to see Amazon push through downtrend resistance (blue lines) and challenge last month’s high near $3,367. Above that opens the door to the $3,500 resistance level.
On the downside, however, I don’t want to see AMZN stock lose its 50-day and 100-day moving averages. Below puts uptrend support in play, followed by the $300 mark. Below that, and the 200-day moving average could be in play.
Top Stock Trades for Tomorrow No. 2: Microsoft (MSFT)
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Microsoft (NASDAQ:MSFT) has a similar setup to Amazon, although it’s a bit further along. Holding up over its 50-day and 100-day moving averages, shares are now pushing through last week’s high and wedge resistance.
I would love to see a move up to last month’s high near $227.50. Keep in mind, the $225 level is the 161.8% extension. Above both marks put the all-time high in play at $232.25.
Above that, and perhaps Microsoft can climb toward the two-times range extension near $247.
Like Amazon, I don’t want to see MSFT stock lose its 50-day and 100-day moving averages. Below could put the $200 to $205 area in play.
Top Stock Trades for Tomorrow No. 3: Virgin Galactic (SPCE)
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How many times have we pounded the table on Virgin Galactic (NYSE:SPCE) being a worthy speculative play? Too many at this point. Now it’s hitting new highs from the first-quarter selloff.
The stock has cleared the July high at $27.55, but is struggling with the 61.8% extension at $29.72. If the stock can clear $30, the $35 to $36 area could be in the cards.
There, SPCE stock will find the 78.6% retracement from the March low to the February high. In that same range, it will also find the 161.8% extension from the September low to the July high. I like this area as a price target should SPCE stock maintain momentum.
On the downside, though, I don’t want to see Virgin Galactic lose the $27.50 area — although I know that tight of a leash will probably not work with a volatile name like this. Instead, I’m using the October high and 10-day moving average.
Top Trades for Tomorrow No. 4: BlackBerry (BB)
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Only BlackBerry (NYSE:BB) could find a way to make a 19% one-day gain look bearish.
Up 19% to end the day, BlackBerry fell 27% from the session high. In other words, it was up nearly65% at one point on Tuesday.
On the long side, see that it stays above $6.50. That was multi-year support before turning to resistance in early 2020 before Covid-19.
On the upside, look for another test of the 200-week moving average. Above that puts Tuesday’s high in play at $9.69, followed by a test of the 2019 high at $10.29.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in any of the securities mentioned in this article.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
